Milk market in China

Earlier Report Observations

China's milk market volume grew steadily from 36.5 million tons in 2018 to 48.3 million tons in 2023. This expansion was powered by a consistent annual rise in domestic production, which increased from 35.0 million tons to 46.8 million tons over the same period.

Import volumes provided additional supply, peaking at 2.6 million tons in 2021 before receding to 1.6 million tons in 2023. The market's growth trajectory remained upward as the strong domestic output more than compensated for the subsequent reduction in imports, while export activity was minimal.

Production milk in China

In kind, 2017-2020, K t

China was among the world's leading milk producers from 2017 to 2020, ranking fourth globally by production volume during this period.

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

Milk production in China grew for the third consecutive year. In 2020, the country produced 38 885 thousand tonnes of milk, marking a modest 7.0% increase compared to 2019. Over the 2017-2020 period, production rose by 12.2%, which translates to an annualized growth rate of 3.9%.

Annual dynamics of production in China in kind, 2017-2020, K t

In value, 2017-2020, M $ US

After a two-year decline, China's milk production value rebounded. In 2020, the output was valued at 44 602 million US dollars, representing a 9.9% uptick from the previous year. From 2017 to 2020, production value increased by 4.5%, with a compound annual growth rate of 1.5%. The lowest value was recorded in 2019 at 40 574 million US dollars, which also saw the largest decline of 3.3% during this timeframe.

Annual dynamics of production in China in value, 2017-2020, M $ US

Exports milk from China

Exports in kind, K t

China's milk export volume declined for the second consecutive year. In 2020, exports amounted to 29 thousand tonnes, showing only a marginal fluctuation compared to the prior year. Between 2017 and 2020, exports increased by 4%, equating to an annualized rate of 1.3%. The peak was in 2018 at 33 thousand tonnes, which also experienced the largest increase of 16.5%. In contrast, 2019 recorded the largest decline of 10.4%.

Annual dynamics of product's exports from China in kind, 2017-2020, K t

From 2017 to 2020, China's milk exports in volume terms were heavily concentrated on Hong Kong, which accounted for 89.6% of total flows, with the remaining volume distributed among other trading partners.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from China in kind, 2017-2020

Exports in value, M $ US

In 2020, China's milk export value totaled 34 million US dollars, up by 2.5% from the previous year. Over the 2017-2020 period, exports decreased by 3.1%, corresponding to an annualized decline of 1.0%. The minimum value was recorded in 2019 at 33 million US dollars, which also saw the largest decline of 16.5%. The maximum value occurred in 2018 at 40 million US dollars, with the largest increase of 13.3% that year.

Annual dynamics of product's exports from China in value, 2017-2020, M $ US

During 2017-2020, Hong Kong absorbed 81.9% of China's total milk export value, while the remainder was spread across a diverse range of smaller destinations.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from China in value, 2017-2020

Imports milk to China

Imports in kind, K t

China's milk import volume increased for the third consecutive year. In 2020, imports reached 2 043 thousand tonnes, up by 5.3% from a year earlier. From 2017 to 2020, imports grew by 44.8%, equating to an annualized rate of 13.1%.

Annual dynamics of product's imports to China in kind, 2017-2020, K t

Throughout 2017-2020, New Zealand, Germany, and Australia were the key partners for China's milk imports in volume terms, accounting for 52.5%, 15.5%, and 9.5% of imports, respectively. Together, they represented 77.6% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to China in kind, 2017-2020

Imports in value, M $ US

China's milk import value rose for the third consecutive year. In 2020, imports registered 4 639 million US dollars, which is 8.4% higher than the prior year. Over the 2017-2020 period, imports increased by 49.9%, with a compound annual growth rate of 14.5%.

Annual dynamics of product's imports to China in value, 2017-2020, M $ US

From 2017 to 2020, New Zealand, Australia, and Germany led the structure of China's milk imports in value terms, with shares of 63.0%, 10.1%, and 6.6%, respectively. Collectively, they accounted for 79.6% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to China in value, 2017-2020